What is an 'ALTA Owner's Policy' versus an 'ALTA Loan Policy' in Delaware?
Why The ALTA Owner's Policy protects the buyer; the ALTA Loan Policy protects the lender's interest in the property Is Correct
Answer B: The ALTA Owner's Policy protects the buyer; the ALTA Loan Policy protects the lender's interest in the property
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
People Also Study
Related Delaware Questions
- In the income approach, before applying the cap rate, the appraiser must estimate:Property Valuation
- A Delaware property is appraised at $310,000. The lender will loan 80% of appraised value. What is the maximum loan amount?Finance
- Testers in fair housing enforcement are people who:Fair Housing
- What is a 'Home Equity Loan' (HEL) versus a HELOC in Delaware?Finance
- What is 'title insurance' for a lender versus 'title insurance' for an owner in Delaware?Escrow & Title
- A Delaware buyer puts 5% down on a $320,000 home. The lender requires PMI at an annual rate of 0.85% of the original loan amount. What is the annual PMI premium?Real Estate Math
- An owner's title insurance policy in Delaware is typically purchased by:Escrow & Title
- At a Delaware closing, the attorney's role includes:Escrow & Title
Key Terms to Know
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →